on 02-25-2015 12:18 PM
Hello All
I need to test for one of my client whether is TDS calculated by SAP or not?
For this I have checked the Tax codes assigned to company codes in SPRO and other requirement like Extended with holding tax calculation should be activated etc. In essence, I have checked the TDS configuration in SPRO and confirmed that it is automatic, But the problem starts because now my client is saying that for some vendors they do advance payment on Proforma Invoice and deduct TDS; while during final payment they deduct balance TDS depend on invoice.
Can someone tell me how to test such thing in SAP. Is there any config in SPRO that we can check?
Warm Regards
Aditya
Hi Aditya,
As per my understanding, first you want to deduct TDS on advance payment and you do not want to deduct TDS on invoice but what ever balance you paid to vendor, on this you want to deduct the remaining TDS. If yes, then you have to follow below steps:
1. First post down payment by selecting the withholding tax type for payment
2. Later you post invoice, here you have to select only withholding tax type for payment code and deselect the w.h.tax type for invoice, if it has selected. Here system wont deduct TDS.
3. After that, you do balance payment posting by F-53/F-58/F110. Here system will deduct the TDS amount on balance amount.
Regards,
Mukthar
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Hi Mukthar
Below is my step wise analysis for all three steps
1. Yes, they do down payment for all such vendors and with holding tax code got automatically selected for vendors asthey define at time of vendor creation. As per config they define C1(Invoice) and CA(Payment)( for all vendors. Some other codes are there but one vendor I have selected these two are codes
2. I have taken screen shot of XK03 for one such vendor, Here in they have selected C1 and as per you it should be CA. Is this normal or wrong?
3. They do clearing using F-58
My doubt is why C1 was coming in with holding tax code column in above image, I believe it should be CA as CA is for payment.
Aditya
Hi Aditya,
2. Yes, CA is for payment
In vendor master data we have to assign w.h.tax code along with w.h.tax type. So in the first column it is w.h.tax type and second column it is w.h.tax code. If you select w.h.tax type as C1, then it should display w.h.tax code as C1. Because at the time of w.h.tax code creation you assign w.h.type to the code. Due to this if you select C1, it wil display C1 only.
Regards,
Mukthar
Hi Mukhthar
Any thing can be said from above image which tax type/tax code they would have used for payment?
I got your point in above post but why I have posted that image is I thought it should be CA in both with holding tax type and code and not C1. My question is how can be find out which tax type code is used for this vendor at time of payment so that I can say that TDS calculation is automatic
Regards
Aditya
Hi Aditya,
TDS is paid at the time if Payment or Invoice which ever is earlier, so if you are making Advance / prepayment, you need to Post TDS.
for e.g. say you paid Advance of 100 Rs and it is liable to 10 % then you can post like below :
Vendor A/c...Dr. = 100 Rs
Bank Clearing A/c = 90 RS
TDS A/c =10 Rs
you can post this entry through F-02 and here you can get option to select WHT tax code in tab "withholding tax code data"
one you recieve Invoice, post it without deducting TDS. this you can do it by removing WHT tax code while posting an invoice.
Expense A/C Dr. = 100 Rs
vendor A/c Cr. = 100 RS
lateron you can clear vendor ledger through T code F-44
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Hi Aditya,
Pre-requisites:
1. WHT tax type should be created (at invoice or at payment)
2. WHT tax code should be defined and assigned to tax type
3. Assign the WHT tax type and code to the vendor master
Steps to test:
1. Post a down payment request using F-47
2. Post downpayment using F-48 or F110
3. In this document, TDS should have been deducted assuming the pre-requisites are maintained correctly.
4. Post an Invoice using FB60 or MIRO
5. If WHT type is at the time of invoicing, TDS will be deducted after the document is posted. The net effect of TDS deduction can then be checked in the TDS G/L balance.
Hope this helps!
Regards,
Chetan
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HI Aditya,
Please follow the below.
1. use EWT concept, 2. configure Payment tax type and code and also Inv tax type and code.
3. Assign both to vendor master 4. post DP at F-48 or F110 5. Post Invoice 6. DP clearing
7. Final payment.
Careful : F-48 full TDS, f-43 full TDS, F-54 DP clearing with TDS reversal on DP. F-53 No TDS.
set 'Central Inv Pro" option for payment tax type.
Regards
Madhu M
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Hi,
If i understood your requirement properly, then in SAP Ext.W/Tax - can specify the tax types as during invoice or payment. And in vendor master data -> withholding tax tab need to mention the proper tax types, code and liable check box. Using these settings above reqt. can be met. Pls. check.
Cheers,
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